Question
Asked Feb 3, 2020
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You are the curator of a museum.  The museum is running short of funds, so you decide to increase revenue.  Should you increase or decrease the price of admission? Explain

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Expert Answer

Step 1

The decision of the curator of a museum will be based on the price elasticity of demand. The price elasticity of demand measures how much quantity demanded by the consumer or responds of a consumer to the change in price.

Step 2

In the case of an inelastic demand, the increase in price will not harm the demand for the product, here the change in demand is less response ...

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